In a new series run in conjunction with Appliance Retailer magazine, Current.com.au will be speaking to the industry leaders, big brands and well-known identities that have helped shape the electrical retail industry in 2013.

Today, Miele ANZ managing director Michael Jeanes explains why traditional retail must evolve to stay relevant, laments commoditisationin the industry and promotes a little-known audio brand.

How has the first half of 2013 been for your business?

As a total business, we have had a great start to the year with growth across all categories in volume and value.  Key technologies like induction, heat pump dryers, steam technologies in laundry and cooking, as well as a brilliantly engineered new range of vacuum cleaners are our key product drivers.  The consistency of growth is not experienced across all retail partners or states but will look to stabilise throughout the year.

What are your predictions for the second half of the year?

Generally speaking, we experience stronger second halves of the year, so we are feeling very positive owing to a number of innovative promotions and new product launches that will drive customer and consumer interest alike. 

What opportunities do you see for the electrical retailing industry?

Opportunities are still rife for those manufacturers and retailers who are focused firmly on the consumer and are not adverse about trying something new.  As an example, more and more of our retailer partners are focused on making the consumer experience come alive by implementing controlled, high quality cooking experiences in-store on a more frequent basis, which adds real value.

Bricks and mortar retailing in Australia must evolve and provide a reason for consumers to visit.  Additionally, online provides the single biggest opportunity for growth but there are only a handful of local players (across all industry sectors!) who are doing it really well.  Significant investments are required for both experiential and online retail activation but the reward is to have clear differentiation in the hearts and minds of the consumer.  Surely this is the priority of any brand or retailer?

What threats are currently present in the industry?

The ever present commoditisation of key product categories is a constant threat and will be difficult to control in the medium term.  The topic is principally about restructuring a business: for a retailer or supplier to work in the new world, whilst not trying to hang on to what happened yesterday.  A well-known fact is that the fixed cost base of retail in Australia is much higher than that in Europe or the US, and this puts pressure on the entire sector. 

Those who are smarter and faster to react will always have the upper hand. Denying it is happening or trying to prevent it will be time wasted as we have seen with AV, as just one example. 

This will have a lesser impact on premium brands but no one brand is immune — we always question what this means to us and our retail partners.

What is your favourite product of 2013 so far?

Aside from our own products my favourite product of 2013 so far is the little known Ruark Audio R4i.  It oozes quality and blends retro design with product innovation and audiophile sound reproduction.  It would be remiss of me to mention that the best product range to be launched in Australia in 2013 will be from Miele and it is just around the corner — but I can’t tell you about that yet!

The July issue of Appliance Retailer magazine includes more discussion on the issue from more than 20 leading figures.

If you would like to take part in our Influencers series, contact editorial@current.com.au.